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Foxconn, Apple to set up $7 bn manufacturing plant in US

tech Updated: Jan 23, 2017 12:17 IST
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Workers walk out of the entrance to a Foxconn factory in Chengdu, Sichuan province. Apple and its suppliers such as Taiwanese tycoon Terry Gou's Foxconn Technology Group have been the target of labour rights groups, which say the world's most valuable technology company are making iPhones and iPads in massive sweat shops. (REUTERS)

Taiwan technology giant Foxconn is teaming up with Cupertino, San Francisco-based Apple to set up a display-panel manufacturing facility in the US with an investment of $7 billion, the media reported on Monday.

“The facility could create between 30,000 and 50,000 new jobs and could include the production of TV screens in addition to smartphone displays,” quoted Terry Gou, Foxconn’s Chairman and CEO, as saying.

The plan comes after US President Donald Trump in his inauguration speech reiterated his “America First” agenda meant overturning international trade treaties.

Read: India’s loss, America’s gain? Apple may shift iPhone factory to US

“During his campaign, Trump had repeatedly threatened high import tariffs in order to encourage American and foreign companies to move production to the US,” BBC reported.

He singled out China as a significant cause of lost manufacturing jobs in the US.

Foxconn -- formally known as Hon Hai Precision -- has most of its factories in China where it assembles Apple’s iPhones.

Last year, the firm took over Japanese electronics veteran Sharp and the display-making investment being considered in the US is thought to be under the new Sharp unit.

Read: Apple iPhone 8 to come with facial recognition tech via new ‘laser sensor’

The White House website, updated after Trump’s inauguration, makes clear that the new administration will pursue plans to alter trading relationships with Asian countries.

Trump also said he will renegotiate the North American Free Trade Agreement (Nafta) with Canada and Mexico.